The Irvine, CA-based company is engaged in the design, construction and sale of single-family homes.
The upgrade comes after the company reported better-than-expected 2015 fourth quarter results on Friday.
TRI Pointe Homes posted adjusted earnings of 52 cents per diluted share, which beat JMP Securities' expectation of 41 cents per share and consensus estimates of 46 cents per share. Revenue for the period was $879.7 million, topping analysts' expectations of $840.4 million.
For the first quarter, the company said it expects to open 25 new communities and close out of 11.
"Initial 2016 guidance indicated a slightly lower community count, absorptions, gross margins, and SG&A leverage versus our previous forecast. However, lower homebuilding guidance was offset by $45-$50 million of higher-than-expected land sales profits in 2016," JMP Securities said in an analyst note.
Shares of TRI Pointe Homes are up 0.88% to $10.35 at the start of trading on Monday.
Separately, TheStreet Ratings Team has a "Sell" rating with a score of D+ on the stock.
This is driven by a number of negative factors, which should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks covered.
Among the areas the team feels are negative, one of the most important has been poor profit margins.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: TPH